Las Vegas Casino Operators Oppose Online Gambling
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Las Vegas casino magnates, Sheldon Adelson and Steve Wynn
, own and operate two gambling empires: the Las Vegas Sands and Wynn Resorts. These enterprises include hotels, restaurants, and shopping malls, all of which are built around the primary business of gambling.
With the advent of online gambling, Las Vegas casino operators were faced with the challenge that people wishing to gamble could stay at home and do so on their computers. They can even play on their smartphones and tablets. Las Vegas casino operators such as Adelson and Wynn view this as a serious threat to their revenue potential. The Boyd Gaming Corporation is taking a different approach in that they are embracing the move towards regulated online gambling and are preparing to adapt their business plan accordingly.
Sheldon Adelson versus online gaming
Las Vegas casino giant, Sheldon Adelson, is one of the most prominent, powerful, and vocal opponents of regulated online gambling. He has invested a substantial amount of money lobbying against the legalization of online gambling. Adelson views the legalization of online gambling as a threat to his gambling empire rather than an opportunity for future growth.
Fellow Las Vegas casino operator and owner of Wynn Resorts, Steve Wynn had been staying on the sidelines of this debate. However, he has recently sided with Adelson. But, unlike Adelson, Wynn has taken measures to ensure that he will still be able to get on the online casino bandwagon should he and Adelson fail to curtail regulation efforts.
Las Vegas Casino Operators vs Online Gaming Companies
One of the main fears Las Vegas casino operators have when it comes to online gaming is that their customers will be stolen from them. It would seem that these fears are justified. Las Vegas Sands Corp is currently suing Chinese online gambling companies for trying to steal their brand. The lawsuit alleges that these Chinese online gambling companies have registered many sites that have been designed to look like the sites owned by Las Vegas casino operators. These sites are attempting to fool players into thinking that they are affiliated with the official, trademarked Las Vegas casino brands.
New Opportunities for Las Vegas Casino Operators
Land-based gambling companies in the United States have been unable to match the revenues they enjoyed at their peak in 2007. Most of the major Las Vegas casino operators have posted first quarter loses for their Vegas resorts. Through their partnership with online gaming giant, PartyPoker
, Boyd Gaming Corp. is hoping to reverse this downward trend by embracing online gambling.
Due to the substantial costs of launching their online gambling enterprise, Boyd has yet to see an increase in their bottom line. However, once the initial costs have been covered there is an expectation that there will be an increase in profitability down the road. In addition to New Jersey, Delaware, and Nevada, more states making the move towards legalizing online gambling and some analysts claim that California could be the next state to follow the trend.
In light of this, Las Vegas casino operators may well discover that their opposition to online gambling may be futile. And, while Las Vegas casino operators like Steve Wynn seem to favor taking a conservative approach to online gambling, other Las Vegas gambling companies are betting large that this new trend will set the stage for huge revenues in the future.